The Role of Business Analytics in Performance Management

Abstract

This chapter introduces the role of Business Analytics (BA) in Performance Management (PM), thus explaining the theoretical and practical concepts of BA, Performance Management Analytics (PMA), and organizational performance; the overview of performance measurement and PM; the application of Performance Management System (PMS) through BA; and the significance of BA in PMA. This chapter also explains the practical areas of BA and their advantages within the foundation of PM. BA can be used to validate causal relationships within traditional input, process, output, and outcome categories toward business success. Extending the domain of PM to PMA requires new business data analysis skills to gain organizational effectiveness. PMA fills the existing gap between PMS and effective PM adoption. Understanding the role of BA in PM will significantly enhance the organizational performance and achieve business goals in the global business environments.

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